BSX is a great company with a great future especially if the GDT deals go thru. If not they will use all the cash they are generating to buy someone else to diversify some more or maybe even start paying a dividend. They already have over 55,000 products that are all growing very nicely as the baby boomers get older and need more care. The stock will recover as it got ahead of itself after taking a 70% market share is the DES market in 70 days after introduction. They kicked Cordis's ass and are still doing it even though their market share has fallen back to somewhere in the mid 50's. Still not bad, and the margins are great, making it a real cash cow. A free cash flow this year of some $1.6 billion on sales of over $ 7 billion without the GDT deal. The forward PE is very low and that will move the stock higher. I think of all the products that they have that help people and it makes me very proud to have once been a part of BSX. That's all for now, as I have a tee time. Galfa62 signing off. Go BSX
New studies have come out sine that August article that prove that article to be false. The new studies were also independent, non-biased, and involved a mush larger population sample. The new study gave the edge to Taxus.
This looks bad for BSX but of course its only one of their many problems, we may not have to worry about Taxus stinking if the FDA recalls it.
Studies Give Edge To J&J Stent
Matthew Herper, 08.16.05, 4:00 PM ET
NEW YORK - Johnson & Johnson has a better product than its rival, Boston Scientific, for holding open clogged arteries.
New data published in the two leading medical journals indicates that patients who receive Cypher, a drug-coated stent made by Johnson & Johnson (nyse: JNJ - news - people ), are much less likely to need a repeat surgery than those who get Taxus, a rival--stent from Boston Scientific (nyse: BSX - news - people ).
That's more bad news for Boston Scientific, which has seen shares drop 30% since September 2004 amid concerns over its over-reliance on drug-coated stents.
"There is a difference," says David J. Moliterno, a cardiologist at the University of Kentucky who wrote an editorial on the studies in The New England Journal of Medicine.
For all patients taken as a group, Moliterno says, those who receive Taxus are more likely to need their procedure redone than those who receive Cypher.
High-risk patients, such as those with diabetes, also fare better with the Cypher stent, he says.
Samin Sharma, a cardiologist at the Mount Sinai School of Medicine, say she thinks most doctors would opt to use Cypher if it weren't for persistent manufacturing problems that can make the device harder for doctors to get. He notes that the evidence is consistent that Cypher is better at preventing arteries from reclogging.
The researchers found that patients receiving Cypher were at much lower risk of having their arteries reclose than those who received Taxus. The results are published in the current issue of The Journal of the American Medical Association. Says Firth, "I think the value of this product from a health economics standpoint is very clearly demonstrated."
Meanwhile, J&J says the U.S. Food and Drug Administration has visited new manufacturing plants that would finally allow it to churn out more Cypher stents--and it is waiting for the OK to start the assembly lines running.
Lots more bad news coming next week. More downgrades, more insider selling coming. Get out before the big crash comes. Look in the past i have been right a long time. You only see the tip of the iceburg this company has serious issues that will show soon.
UPDATE 3-Boston Scientific shipping problems 'serious' -FDA
(Adds details and background throughout, updates shares to close)
By Susan Heavey
WASHINGTON, (Reuters) - Boston Scientific Corp.'s (BSX.N: Quote, Profile, Research) distribution process has "serious" problems that allowed flawed medical devices to be shipped, including its Taxus drug-coated stent, U.S. regulators said in a letter made public on Tuesday.
FDA inspectors said the company failed to properly monitor products so that only acceptable devices were distributed, according to the letter.
The warning, which also targeted the device maker's Vaxcel chest ports and Symmetry catheter, is the latest setback for the device maker after a string of manufacturing-related product recalls and other FDA warnings.
The company's shares, which have underperformend the S&P 500 by 28 percent since January, closed down 4.53 percent, or $1.23, to $25.92 on the New York Stock Exchange.
Yet industry analysts said Tuesday's letter did renew worries about the beleaguered medical device sector, which has been hit hard during the last year with a series of manufacturing-related problems, they said.
"We do not dispute that some of these mistakes occurred," Rudnick said. "We're working on the process issues."
The latest FDA warning letter followed an inspection of Boston Scientific's Quincy, Massachusetts, shipping facility.
Agency inspectors said the company did not have adequate management oversight to review quality and "failed to implement procedures to assure that only devices approved for release are distributed."
It also did not properly document corrective actions or review data that could help pinpoint problems.
"On a number of occasions, your firm shipped medical devices that were not considered acceptable for release," it said. The letter did not mention any impact on patients and an FDA spokeswoman was not available for comment.
One over one hundred Taxus heart stents that failed a quality test were sent to hospitals. The FDA also said the company shipped five Vaxcel units on three different dates after they were recalled in August 2004.
Boston Scientific initially responded to the FDA's concerns with a June 20 letter offering its commitment to improving its quality controls, the latest warning said. But the agency said that was insufficient.
"Your response does not identify how and when you plan to implement significant, broad-based corrective actions, nor does it provide sufficient evidence to establish that you have made real changes to your current quality system," the FDA said.
Last year, Boston Scientific recalled 99,000 Taxus stents after reports of malfunctions.
Ryan Rauch, an analyst with Jefferies & Company Inc., said the FDA was not likely to force injunction against the Taxus devices because it would cut the U.S. supply. But he added that the warning highlighted sector woes.
A.G. Edwards analyst Jan Wald said Boston Scientific's inadequate response to the FDA was a concern.
"It sounds like there's more work to do for Boston Scientific."
I'm sure the huge debt, failed products, etc and the cost of recalls is going to hit the bottom line, so they want out by getting suckers to buy on hype while they dump, but I think the real reason they want out so bad is because they know that EECP and alternative technologies are catching on and it will put an end to BSX.
BSX only real product is totally obsolete. Its history say night night.
Doctors have cut into Theodore Dippy's heart twice to clear clogged arteries, other times they attempted to sweep aside blockages with tiny balloons, and once left a metal stent inside an artery to keep it propped open, after going through numerous heart procedures he finally found relief with a little known treatment that involves sqeezing the legs in large cuffs to propel more blood to the heart. The nonsurgical approach, called Enhanced External Counterpulsation, has been found by studies to provide a significant reduction in chest pains and blockages. The low tech treatment is carried out during one hour sessions while the patient lies on a padded table, with 3 large cuffs on each leg.
Dippy's doctor, cardiologist Ken Kronhaus, has treated more than 600 patients with EECP.
Today, doctors throughout the U.S. offer the treatment at prestegious medical centers, including the Mayo Clinic, and the Cleavland Clinic, have centers for the procedure.
Researchers have been able to document the improved blood flow by doing heart scans on patients before and after treatment to look for changes. Medicare recently began paying for the procedure. Other insurers also cover the procedure. Doctors who offer the therapy see a trend toward its greater use.
BSX is stuck between a rock and a hard place. If they take over Guidant the debt will kill them, if they don't competitors will eat them alive. The chart is bearish indicating a sell. Down on high volume is not good. The insiders where selling so much stock at the lows because they know there will be more lawsuits coming and problems with the Dept. of Justice.
I am not a pumper or a short. Just stating the facts.
We will definitly have to retest the $22.75 area unfortunately. Hopefully we hold support at $22.75 or it could even go lower than that, but the charts don't lie about these things unfortunatly, its also overbought again, but we will definitely have to retest,then we will see if it heads lower or forms a double bottom then comes back with volume at about $22.
In other topics,
Stagflation is a recurring topic when the economy is growing slowly or not at all and people feel gloomy. In the 1970s, U.S. companies were inefficient and unable to keep up with the high quality and variety of foreign goods. Two oil shocks and loose monetary policy triggered inflation, which was unusual for a recession: Inflation generally appears when aggregate demand is too high, exactly because the supply of goods and services cannot keep up with growing demand. Instead, stagflation, the sum of stagnation and inflation, appeared in many developed countries. Policymakers did not know what could have helped the situation. Eventually it ended, but at the cost of a painful readjustment.
What could cause stagflation again? Let's start with the stagnation component. U.S. consumers have been spending beyond their means thanks to second mortgages and relatively easy credit: If they ceased borrowing any further and reined in their spending, we could see a significant slowdown.
Similarly, the U.S. federal government along with some local governments have been running deficits, spending more than they collect in taxes and other revenues. A tax reduction when a deficit is present is a loan the government takes from your children and passes to you. While it is logical to borrow money from future generations to invest and leave them with a cleaner, safer, and more productive world, it may be counterproductive to borrow from them to finance consumption, unless it is for a very limited time. What if the future generations (and the rest of the world) stopped lending us money? That is, what if the U.S. trade deficit, which is the result of consuming more than we produce, had to be reduced, perhaps using a large devaluation of the dollar? Could households and governments live more within their means without triggering a crash in aggregate demand? Would real estate prices fall?
As for inflation, energy and basic-material prices have been rising, due in part to sustained demand from emerging economies. Can the U.S. at least partially free itself from the economic and political yoke of elevated energy consumption and therefore damp the effects of resource price peaks? Probably not. Besides, the dollar devaluation I mentioned earlier would make imported inputs even more expensive.
In addition, an accommodating monetary policy has allowed growth in asset prices, particularly real estate. In turn, this enables households to finance consumption by borrowing more and more, leading to further inflationary pressures. Perhaps bank supervisors, including the Federal Reserve and the Comptroller of the Currency, should discourage banks from offering creative mortgages and second lines of credit to borrowers who already have a lot of debt. In any case, the accommodating monetary policy of the Greenspan Fed may already be leading us into an inflationary period.
Hence, the case for stagflation as a plausible scenario exists. A collapse in internal demand together with a dramatic fall of the dollar and upward pressure on prices may happen.
I wonder if they will be able to keep out of Bankruptcy with all the balooning debt, this could be a big problem if the FDA forces the removal of Taxus from the market.
If they keep having problems like this this stock is history.
Doctors have continued reporting injuries during the implantation of cardiac stents made by Boston Scientific Corp., many of them linked to a problem that preceded a large recall of the devices last year.
Balloons used to deploy the stents -- small, wire-mesh tubes inserted into clogged arteries to open them up -- failed to deflate or were so hard to remove that numerous people died and dozens more were injured during operations performed after the 2004 recall, according to Food and Drug Administration records.
A review of the FDA data show that the agency received at least 145 reports of deflation difficulties with Boston Scientific stent balloons. In 186 other cases, doctors reported that the balloons became stuck or otherwise were difficult to withdraw from a patient's body.